Calculate Mean Returns for Your Portfolio

The MeanReturns function in MarketXLS enables you to quickly calculate average performance on your portfolio, helping you track and analyze how your investments perform over a given period. It supports both monthly and annualized mean returns, making it easy to get a clear perspective on your portfolio’s growth rate.

Why Use This Function?

• Simplified Performance Analysis: Reduce the complexity of manual return calculations by getting instant results in Excel.
• Multiple Variation Options: Choose monthly or annualized returns to suit your specific analysis needs.
• Auto Period Handling: Default behavior applies 12 months if no period is specified, ensuring quick usage without extra parameters.
• Streamlined Portfolio Management: Quickly evaluate a portfolio’s efficiency and compare it against benchmarks.
• Real-world Financial Monitoring: Ideal for monitoring personal or professional portfolios using real-time or historical market data.

How to Use in Excel

=MeanReturns(portfolio, [period], [variation])

1. Type the function directly into a cell in Excel.
2. Replace “portfolio” with the cell range or named range that contains your list of tickers.
3. Specify the “period” (e.g., 12 for 12 months) if you want a custom range. If omitted or left blank, the default is 12.
4. Include the “variation” argument for either "monthly" or "annualized" mean returns. If omitted or invalid, the function defaults to "monthly".
5. Press Enter to see the mean returns in the cell.

Parameters Explained

Example Usage

Basic Examples

1. Monthly Mean Returns (Last 12 Months)
   =MeanReturns(A2:A10, 12, "monthly")
   This retrieves the monthly mean return for the tickers listed in A2:A10 for the last 12 months.

2. Annualized Mean Returns (Last 12 Months)
   =MeanReturns(A2:A10, 12, "annualized")
   Calculates the annualized mean return of those same tickers.

3. Using Default Period
   =MeanReturns(A2:A10)
   Defaults to 12-month monthly mean returns because "period" is omitted.

Advanced Scenarios

• Combine with other Excel Functions:
For instance, nest MeanReturns within an IF or LOOKUP function to automate portfolio rebalancing signals.

• Longer Tracking Periods:
=MeanReturns("MyStockRange", 24, "annualized")
Helps you analyze two years’ worth of data, annualized for a broader performance overview.

• Trading Strategy Monitoring:
Reference multiple columns of stocks or different named ranges to evaluate how various segments of a portfolio are performing.

Common Questions and Troubleshooting

• What if I enter a period other than a standard 12 months?
The function will simply calculate the mean returns for that many months (e.g., 3, 6, 24), letting you choose the exact analysis window.

• Why am I getting an error or “NA”?

• License Not Valid: Ensure your MarketXLS add-in license is active.
• Invalid Portfolio: Double-check that your portfolio reference points to valid tickers or a valid data range.
• Generic Error: If an unexpected error occurs, the function returns “NA”; confirm parameters and ensure the data is available.

• Do I need to specify both “period” and “variation”?
No. You can omit either or both. The default period is 12 months, and the default variation is monthly.

By leveraging MeanReturns in Excel with MarketXLS, you can make quick, informed decisions on your portfolio strategy, monitor historical performance, and gain insight into monthly or annualized performance trends. This function makes detailed return calculations easier than ever, ensuring you spend more time acting on insights rather than manually crunching numbers.